MÅLVIKEN TUNGSTEN

Unit

= estimates

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Sum

PRODUCTION  PARAMETERS    Mine

Exploration drilling

m

Investment

3,250

6,000

9,250

Definition drilling

m

Op cost

0

3,000

8,000

8,000

8,000

8,000

8,000

8,000

4,000

1,000

56,000

Development

m

Investment

1,700

700

2,400

Development

m

Op cost

0

1,300

1,300

1,300

1,300

1,300

1,300

1,300

1,300

0

10,400

Ore production

,000 t

0

125

300

300

300

300

300

300

300

300

2,525

PRODUCTION PARAMETERS         Mill 

Mill feed

,000 t

0

125

300

300

300

300

300

300

300

300

2,525

Head grade

WO3 %

0.72

0

0.72

0.72

0.72

0.72

0.72

0.72

0.72

0.72

0.72

0.72

Technical recovery

%

80

 W produced

,000 kg

0

720

1,728

1,728

1,728

1,728

1,728

1,728

1,728

1,728

14,544

Commercial recovery

%

95

 Payable mtu

 mtu

0

68,400

164,160

164,160

164,160

164,160

164,160

164,160

164,160

164,160

1,381,680

CAPITAL EXPENDITURES

US$/unit

Exploration phase 1

Ea

505,617

505

505

Exploration drilling

m

67

219

404

624

Development

m

1,348

2,292

944

3,236

Powerline, Transf. Pumps

Ea

112,360

112

112

El. Power

mth

11,236

112

112

Mill, office, workshop, site prep

Ea

10,112,360

10,112

10,112

Mine dep. Admin.

mth

16,854

169

169

Målviken G&A

mth

28,090

281

281

Subtotal

,000 US$

13,803

1,348

0

0

0

0

0

0

0

0

15,151

OPERATING COSTS 

Mine

Development

US$/m

1,236

0

1,607

1,607

1,607

1,607

1,607

1,607

1,607

1,607

0

12,854

Ore production

US$/t

7.9

0

983

2,360

2,360

2,360

2,360

2,360

2,360

2,360

2,360

19,860

Definition drilling

US$/m

79

0

236

629

629

629

629

629

629

315

79

4,404

Mine Dep. Admin

US$/mth

16,854

34

202

202

202

202

202

202

202

202

67

1,719

Subtotal

34

3,028

4,798

4,798

4,798

4,798

4,798

4,798

4,798

2,506

38,837

Crushing & FEL Feeding

US$/t

0.79

0

98

236

236

236

236

236

236

236

236

1,986

Mill

US$/t

5.62

0

702

1,685

1,685

1,685

1,685

1,685

1,685

1,685

1,685

14,185

Målviken G&A

US$/mth

28,090

56

337

337

337

337

337

337

337

337

112

2,865

TOTAL OPERATING COSTS

                                   ,000 US$

90

4,166

7,056

7,056

7,056

7,056

7,056

7,056

6,742

4,539

57,874

TOTAL COSTS

,000 US$

13,893

5,514

7,056

7,056

7,056

7,056

7,056

7,056

6,742

4,539

73,025

REVENUE

W prize

US$/mtu

74

Net smelter return

,000 US$

0

5,062

12,148

12,148

12,148

12,148

12,148

12,148

12,148

12,148

102,244

Royalties

NET REVENUE

,000 US$

0

5,062

12,148

12,148

12,148

12,148

12,148

12,148

12,148

12,148

102,244

CASH FLOW

,000 US$

-13,893

-452

5,092

5,092

5,092

5,092

5,092

5,092

5,406

7,609

29,220

CUMULATIVE CASH FLOW

,000 US$

-13,893

-14,345

-9,253

-4,162

930

6,022

11,113

16,205

21,611

29,220

INTERNAL RATE OF INTEREST

%

20

CASH FLOW

,000 US$

-13,893

-452

5,092

5,092

5,092

5,092

5,092

5,092

5,406

7,609

29,220

INTERNAL RATE 

,000 US$

-2,761

-3,030

-3,030

-3,030

-3,030

-3,030

-3,030

-3,030

-3,030

-3,030

-30,032